As President of The Republic
In the contest for the succession of Floriano Peixoto, who died of a stroke on 23 November 1891, Morais was nominated by the Republican Federal Party (Federal PR), founded by Paulo Glicerio Francisco in 1893. He won the presidential election on 1 March 1894 and took office on 15 November that year, becoming the first president of Brazil to be elected by direct vote and the first civilian president of Brazil. Prudente gleaned 276,583 votes against 38,291 for his main competitor, Afonso Pena. The election had more than 29 politicians polled. His vice-president was Dr. Manuel Vitorino Pereira. His election marked the coming to power of the coffee oligarchy of São Paulo (the "paulista oligarchy") in place of the military.
The four-year government of Prudente de Morais was shaken both by partisan political issues and continued fighting in Rio Grande do Sul, the center of the Federalist Revolt (1893–1895). Early in his government, he was able to resolve the latter difficulty by signing a peace treaty with the rebels, who received amnesty.
Later, Prudente de Morais devoted all of his efforts to pacify the policial factions within his country, which included extreme advocates of the centralist policies of Floriano Peixoto and supporters of the monarchy. During his rule, he abandoned the innovative measures of Floriano Peixoto one by one. A gradual approach was necessary since the Florianists still had some influence, particularly in the army, and the vice-president was connected to the ideas of the Florianists.
In 1896, he faced a diplomatic issue involving the British, who saw fit to take possession of the island of Trinidade and Martim Vaz in 1895, and the revolt of the Military School. He asserted his authority by closing the school and military club. The diplomatic issue was resolved favorably in favor of Brazil.
Prudente de Morais re-established relations with Portugal and signed a Treaty of Friendship with Japan in November 1895 with the aim of encouraging the arrival of Japanese immigrants.
But shortly after the rebel movement in Rio Grande do Sul, would face an even greater challenge: the War of Canudos in the interior of Bahia.
Forced to undergo surgery, Prudente de Morais retired from power between 10 November 1896 and 4 March 1897, turning over his responsibilities to Vice-President Vitorino. During this interim, Vitorino transferred the seat of government from Itamaraty Palace to the Palace of Catete.
With the victory of the rebels of Antônio Conselheiro in the War of Canudos, the political situation further deteriorated. Prudente interrupted his convalescence and then appointed Minister of War General Carlos Machado Bittencourt to lead a new expedition to defeat the rebels.
Internal differences within the PR and the War of Canudos wore down the government. Even with the victory of the government troops in the war, tensions did not abate. On 5 November 1897, during a military ceremony, Morais withstood an attempt on his life. He escaped unhurt, but his war minister, Marshal Bittencourt, died defending him. The president decreed a state of siege, for the Distrito Federal of (Rio de Janeiro and Niterói) in order to get rid of his most troublesome opponents.
The difficult economic and financial crisis inherited from the Encilhamento economic bubble took its toll on the administration, mainly because of military spending and increased debt to foreign creditors.
With the advice of his ministers of finance, Rodrigues Alves and Bernardino de Campos, Prudente negotiated with British bankers to consolidate debt in a financial transaction known as funding loan, based on the policy implemented by Joaquim Murtinho within four years.
In foreign policy, a boundary dispute with Argentina arbitrated by U.S. President Grover Cleveland was resolved in favor of Brazil. Historians ascribe that diplomatic success to the efforts and diligence of the Brazilian Government's representative, the Baron of Rio Branco, appointed by Morais to lead the Brazilian delegation in the arbitration process.
Read more about this topic: Prudente De Morais
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